Crane Corporation uses a periodic inventory system and the gross method of accounting for purchase discounts. (a) On July 1, (1) Crane purchased $90,000 of inventory, terms 2/10, n/30, FOB shipping point. (2) Crane paid freight costs of $1,280. (b) (c) On July 3, Crane returned damaged goods and received credit of $9,000. On July 10, Crane paid for the goods. Prepare all necessary journal entries for Crane. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation No. (a) (1) (a) (2) Date July 1 July 1 Debit Credit
Crane Corporation uses a periodic inventory system and the gross method of accounting for purchase discounts. (a) On July 1, (1) Crane purchased $90,000 of inventory, terms 2/10, n/30, FOB shipping point. (2) Crane paid freight costs of $1,280. (b) (c) On July 3, Crane returned damaged goods and received credit of $9,000. On July 10, Crane paid for the goods. Prepare all necessary journal entries for Crane. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation No. (a) (1) (a) (2) Date July 1 July 1 Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ashvin
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Transcribed Image Text:Crane Corporation uses a periodic inventory system and the gross method of accounting for purchase discounts.
On July 1, (1) Crane purchased $90,000 of inventory, terms 2/10, n/30, FOB shipping point. (2) Crane paid freight costs of
$1,280.
(a)
(b)
(c)
On July 3, Crane returned damaged goods and received credit of $9,000.
On July 10. Crane paid for the goods.
Prepare all necessary journal entries for Crane. (If no entry is required, select "No Entry for the account titles and enter 0 for the amounts.
Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.)
No.
(a) (1)
(a) (2)
Date
July 1
July 1
Account Titles and Explanation
Debit
Credit
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